A big bounce..... | stockbee

10/29/2008

A big bounce.....

  • It had breadth and Market Monitor numbers show 2000 plus breakouts. However volume was not as massive as the point or % move. We have only 48 EP and only 7 of them were on 10 times volume.
  • Overnight markets were very strong yesterday. Many of these markets had several days of selloff before that.
  • US futures were strong and a gap up was indicated, setting us up for a big up day.
  • Market opened strong, but gave up the gains after the consumer sentiment data came out. However it never looked in trouble.
  • Slowly it started rebounding from the lows and steadily built a up move. The move accelerated post 2 pm.
  • At this stage we do not know whether this is bottom. My expectation was only for a big 1-2 days up move of 10%. That has happened and most of the gains also happened yesterday.
  • What the move tells us is a possible double bottom is in the process.

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